The hosts went ahead through David Luiz but were pegged back shortly afterwards by Alexis Sanchez and the game needed spot kicks to see Felipao's men into the next round
Brazil overcame enormous pressure to edge past Chile on penalties in their World Cup last 16 clash in Belo Horizonte on Saturday following a 1-1 draw after extra-time, Goal.com reports.
David Luiz officially opened the scoring for Brazil after Thiago Silva's flick-on from a Neymar corner, although replays seemed to suggest the ball had come off Chile's Gonzalo Jara.
But the host nation were pegged back just after the half-hour mark when Alexis Sanchez equalised following sloppy Selecao defending from a throw-in deep in their own half.
Brazil fans were then brought to their feet 10 minutes into the second half only to have their hopes of a second goal dashed after Hulk's strike was disallowed for a handball in the build-up.
Both South American sides struggled to fashion a better goalscoring chance as energy levels dropped and the game went into extra-time, when Mauricio Pinilla had the best chance to win the match for Chile by crashing a 20-yard strike against the crossbar in the 120th minute.
And so the last-16 tie had to be decided with spot kicks and it was Brazil goalkeeper Julio Cesar who stood out as the hero, pulling off two saves to see Luiz Felipe Scolari's men into the quarter-finals.
Three hours earlier, thoughts that a highly-charged atmosphere would simmer after the spine-tingling national anthems were quickly dispelled, as Fernandinho - starting in midfield in place of the much-maligned Paulinho - crunched into an early challenge.
Perhaps concluding that there was already enough yellow on show in the stadium, referee Howard Webb rightly kept his cards in his pocket.
Brazil started brightly, beating Chile at their own game as they pressed high and afforded their South American counterparts little space.
And after 18 minutes their endeavour brought the corner that created the opening goal, Thiago Silva flicking on Neymar's delivery to the back post - where Gonzalo Jara tussled with David Luiz. The Paris Saint-Germain-bound defender was officially credited with the goal, although replays suggested that Jara had got a decisive touch to divert the ball goalward.
Far from assuming control, though, Brazil were made to pay for some sloppiness at the back 14 minutes later, Eduardo Vargas intercepting a stray Hulk pass and sliding in Sanchez, who produced the coolest of side-footed finishes.
Suddenly end-to-end in nature, the game almost had a third goal before the break as Neymar, Fred and Dani Alves all went close.
Chile gave another reminder of their threat just prior to the interval, Alexis denied his second only by Luiz's last-ditch sliding challenge.
Another flashpoint came quickly after the restart, Brazil prevented from taking the lead when Hulk was crucially adjudged to have handled Marcelo's ball over the top, which had preceded a fine left-footed finish.
The decision was met by a cacophony of jeers from the home fans, but relief was to displace any feelings of injustice Brazil might have had a few moments later, Julio Cesar producing a stunning reactionary save to keep out Charles Aranguiz's effort following fine work from Arturo Vidal and Mauricio Isla.
Brazil continued to look dangerous at the other end, although Neymar's customary composure deserted him as he headed Alves' cross straight at goalkeeper Claudio Bravo - who was later on hand to keep out a powerful Hulk strike.
Extra time brought with it an added caginess - albeit with the exception of Hulk, who - apparently spurred on by a sense of injustice - was at the heart of everything, epitomised by a powerful effort that forced Bravo into a stop.
With Chile suddenly camped on their own box, further chances did not materialise but Jorge Sampaoli's underdogs almost snatched it right at the end of the added period - substitute Pinilla rattling the woodwork with a thunderous drive in the final minute as the hosts were afforded a huge slice of good fortune.
And it was one they took full advantage of. Brazil immediately took control of the shoot-out as David Luiz sent Bravo the wrong way and Pinilla saw his effort saved by Julio Cesar.
And, despite misses from Willian and Hulk, Jara rattled the post with the final kick to leave Neymar's cooly taken effort as the winning one.
THE MATCH, AS IT HAPPENED
MISS!!! Jara's penalty smashes against the right-hand post and flies back across the face of goal, but it does not find the net! BRAZIL WIN!
NO MISTAKE FROM NEYMAR! The Barcelona man produces a stuttering run-up, but he makes no mistake, slotting with admirably composure.
IT'S ALL LEVEL! Diaz, with his long run up, steps up and coolly slots down the middle.
SAVED! Chile have a great chance to level things as Hulk sees his penalty saved by Bravo!
WHAT A PENALTY! Aranguiz, who could barely walk 10 minutes ago, steps up and smashes a brilliant penalty into the top-right corner.
CONVERTED! Brazil go 2-0 up! Marcelo confidently buries his penalty, despite Bravo getting a hand to it.
SAVED! Brilliant save from Julio Cesar! Sanchez puts his kick to the left, but the goalkeeper comfortably keeps it out.
Sanchez now for Chile.
MISS! Brazil had a great chance to go two up, but Willian puts his effort wide of the target!
SAVED! Dreadful penalty from Pinilla as he blasts it slight to the right of centre and Julio Cesar saves easily.
Pinilla now for Chile.
SCORED! Perfect penalty for Luiz as he coolly slams it to his left.
Up first is David Luiz.
EXTRA TIME FAILS TO BRING BREAKTHROUGH
120' + 2' FULL-TIME! Neither side can take the lead again despite chances in the final second and we are all set for a penalty shoot-out. Brazil are now under immense pressure.
120' + 1' Ramires goes close now. A Brazil corner is partially cleared, but Brazil keep the attack alive. Ramires is teed up on the edge of the area, but he smashes just wide of the bottom-left corner.
120' WHAT A CHANCE FOR CHILE! Sanchez does brilliantly to battle the ball away from Brazil and he slips a clever pass in towards the edge of the Brazil away. Pinilla collects and then blasts an unstoppable effort on to the crossbar.
118' Chile are hanging on, but they are doing a good job of it at the moment. They've less than two minutes now and Brazil's desperation is being summed up by hopeless long-range shots.
116' We are having a brief pause in play now as Aranguiz goes down with cramp. He appears to be in some pain and is struggling to walk.
114' Chile appear to have no attacking threat now. This is all Brazil at the moment, but they are resorting to somewhat desperate tactics as they continuously lump the ball up into the air for Jo. He's done little with the deliveries so far, though.
112' Brazil have a free-kick about 40 yards from goal. Neymar takes it short and gives the ball to Alves. However, much to the annoyance of the full-back's team-mates, the Barcelona man sends a long-range effort well over the crossbar.
110' Chilean players are dropping like flies at the moment. Currently Rojas is on the floor following a clattering from Willian, and Gutierrez took a knock from Ramires.
109' That's a bitter blow for Chile. Gary Medel, who has been excellent, is forced off with an injury. He appears to be in some pain in the hamstring area of his left leg and Rojas replaces him.
108' Substitution: Gary Medel OUT, J. Rojas IN
108' Neymar whips the corner into the danger zone and Jo meets it with a good header, but he sends his effort over the crossbar.
106' Substitution: Oscar OUT, Willian IN
106' We are back underway for the second half and Brazil are straight on to the attack, as Neymar cruises down the left flank and bursts past the tiring Silva. He gets a cross into the area, but Medel produces an excellent clearance. Corner to Brazil.
105' + 2' HALF-TIME! Well, this one looks destined for penalties, doesn't it? Brazil created a couple of openings in that first half, but ultimately they have been kept at bay by Bravo and Co.
105' + 1' Yellow Card for Daniel Alves
105' + 1' There will be one minute of stoppage time.
104' That is a good chance for Brazil, though, as Hulk skips past one challenge and then lets fly from 30 yards, but Bravo palms the effort away.
103' We are almost out of time in the first half of extra-time, but Brazil have not really looked like taking the lead. Hulk has looked good, but chances have not been frequent.
102' Yellow Card for Mauricio Pinilla
101' Good play by Hulk as he produces a step-over and races past Mena. The Zenit forward then crosses over to the far post, but Oscar's header is tame and Bravo collects easily.
99' Jo really has not been impressive since coming on for Fred. Brazil look to the former Manchester City forward to hold up play on the right flank, but his poor is touch and he nudges the ball out of play.
97' Extra-time has continued on from the end of regulation time, with Brazil controlling the match. Chile are being kept inside their half, but they do look capable of springing a counterattack, particularly with Sanchez still on.
95' Sanchez wins himself a free-kick about 40 yards from the Brazil goal, going down easily following a challenge from Ramires. They take the kick quickly and short, but Sanchez ultimately smashes a long-range effort well wide.
93' Yellow Card for Jô
93' Brazil waste another set-piece, but they remain on the attack they almost craft a great opening. Jo charges on to a long ball from the back and he makes the most of Chile misjudging the bounce. The forward stretches to reach the ball, clattering Bravo in the process and he gets a yellow card.
92' Neymar's delivery is easily headed behind by a defender, but the pressure isn't over yet as they are of course given a corner.
91' Good play by Hulk as he gets around Silva and wins a free-kick just to the left of the Chile area. Neymar stands over it as Brazil look to get the early breakthrough.
91' Here we go. Referee blows the whistle, which means the two teams will have to play extra time as the stipulated 90-minute ended 1-1 draw.
90' + 3' Dani Alves comes to the rescue again, flicking the ball away from the near post and time is almost up. We look set for an extra half-hour.
90' + 2' We will have three minutes of added time and Chile now have themselves a corner as Dani Alves pokes the ball behind to clear the danger.
90' + 1' Brazil have everyone back now. Chile try to create an opening down the right and they almost do it. Sanchez drifts in from the left, skipping past a couple of challenges and then offloading the ball to the right. Isla then slides a pass into the area for Aranguiz, but his shot is blocked as three Brazilians crowd around him.
89' Sampaoli's men have the ball exactly where they want it for now; down in the corner as they look to keep Brazil back in their own half and hopefully sneak a late winner.
87' Substitution: Arturo Vidal OUT, Mauricio Pinilla IN
84' BRAVO TO CHILE'S RESCUE! Hulk does well as he jinks between a couple of defenders and then bursts into the penalty area, before shooting right-footed. His effort is good and on target, but Bravo dives to his right and palms it away.
82' That's a decent chance for Brazil. Neymar races on to a brilliant lofted ball from near the halfway line and he meets it with a header, but his effort is straight at Bravo, who scoops up with ease.
80' Brazil may be seeing more of the ball, keeping Chile in their own half as they look to steal a late win. Sampaoli's men don't look too troubled, but he won't want them to be sitting too deep.
78' Currently Brazil are controlling possession, but Chile look perfectly happy to sit back and soak up the danger. Neymar has been exceptionally quiet since the break and Brazil's invention has been lacking.
76' We are into the final 15 minutes in Belo Horizonte. Well, the final 15 minutes of regulation time anyway. Can someone win this tie, or are we headed for extra-time?
74' WHAT A CHANCE FOR JO! Brazil have struggled for chances in this second half, but finally they craft an opening. Hulk crosses in from the left and Jo looks destined for an easy tap-in, but Mena pokes the ball away at the last moment.
72' Substitution: Fernandinho OUT, Ramires IN
72' And here is Scolari's next move. Off goes Fernandinho, who has not been particularly convincing, and on comes Ramires.
70' Scolari needs to change something. Brazil are not enjoying any control in the middle of the park, with Gustavo and Fernaninho seemingly unable to get much of a grip.
69' This has been an incredibly even encounter so far. There has been every indication until now that this could go the distance. It would be brave man to discount a penalty shoot-out at the moment.
67' Hulk is adamant he should be given a penalty as he races into the left-side of the Chile area and is nudged over by the powerful Silva. Webb rightly igores the forward's desperate claims, though.
66' Cesar is equally commanding from the resulting corner, coming out to collect it with great composure. This contest is starting to open up once again, which can only be good news for neutrals.
65' MASSIVE CESAR SAVE! Fantastic move by Chile as Isla plays a clever give-and-go with Vidal, receiving the ball back from his Juve team-mate in behind the Brazil defence. He shapes to square into the danger area, but he cuts the ball back to Aranguiz, who sees his first-time effort crucially palmed around the post by Cesar.
64' Substitution: Fred OUT, Jô IN
62' Brazil get themselves a free-kick now. They are encamped in their own area, but they win the ball back and work it left. Isla catches Hulk with a strong challenge.
60' Yellow Card for Luiz Gustavo
60' Gustavo sees his name go into the book for a poor tackle on Vidal inside the Brazil half. This second half has still not yet recovered from the scrappy opening.
59' Chile have a moment to catch their breath as Luiz Gustavo charges into the back of Silva outside of their own area. They take plenty of time over the kick.
57' Substitution: Edu Vargas OUT, F. Gutiérrez IN
57' Howard Webb is not a popular man in the Mineirao. The Brazilians clearly aren't impressed with the decision to not allow Hulk's goal, but replays seem to suggest that their may have been some contact with his arm. Either way, it's a big call.
55' Yellow Card for Hulk
53' Chile find some space down the left as Mena is picked out in an advanced position. The wing-back gets in behind Dani Alves and fires a good cross into the danger zone, but Brazil clear with ease.
51' The second half hasn't quite taken off from where the first started. Not yet, anyway. Proceedings have been a little scrappy, but no less intense.
49' Decent effort from Fernandinho. The Manchester City midfielder is given space about 25 yards from goal and he tries his luck despite being off balance and the effort flies just wide of the left-hand post.
48' Good delivery into the area from Diaz, but Cesar does well to come out and punch it clear, simultaneously springing a Brazil counterattack in the process.
47' Chile win themselves a free-kick in a good position here as Vidal is released down the right flank by Vargas and then cuts inside Luiz, drawing a foul in the process.
46' Off we go for the second half.
45' Great movement from Aranguiz as he produces one of his classic runs from deep, bursting on to a pass into the danger zone, holding off a number of tackles before getting a shot away from close range, but Luiz makes a crucial block.
43' This is becoming increasingly frenetic at the moment, but Brazil are pushing for a second. Daniel Alves first tries his luck from distance, forcing Bravo into an acrobatic stop and then Neymar sends a delivery flashing across the face of goal.
41' Chile see a chance of their own go begging as a ball is lofted into the area from just inside the Brazil half. Sanchez latches on to it inside the penalty area, but his effort on the stretch is easy for Cesar to scoop up.
40' Yellow Card F. Silva
39' Free-kick to Chile near their right-hand corner as Luiz goes in unfairly on Vidal. The defender then proceeds to put his head down towards Vidal's and appears to say something in an aggressive tone, but referee Webb only gives him a warning.
37' Unconvincing goalkeeper by Bravo as he comes out to meet a corner delivery, but the flapping Barcelona man is found all at sea, completely failing to get a touch on the ball. Brazil, however, fail to capitalise, as Aranguiz gets a good block on a Luiz shot from the edge of the area.
36' NEYMAR HAS TO SCORE! Oscar looped a clever cross into the danger area and Neymar arrived late, meeting it with a towering header. The ball takes a deflection of Medel and then goes just wide of the right-hand post. That was very close.
34' Chile have not been at their very best today, particularly with their final ball, but they have just shown Brazil that if they switch off for a second, Sampaoli's men will be ready to pounce.
32' Goal Alexis Sánchez
GOAL!!! CHILE ARE LEVEL! The Brazil defence was completely asleep as Vargas stole possession near the right corner flag, nipping on to a loose pass and then cutting an excellent ball of his own into the area. Sanchez controlled and then coolly stroked a pass into the bottom-left corner, out of Cesar's reach.
31' Neymar is back on the field after a brief spell off the pitch seeking medical attention. He is hobbling about a bit, but his pride is probably more hurt than anything else.
29' Neymar is on the ground again now, following another tough tackle. This time he pokes the bouncing ball past Vidal and the Juventus midfielder barges into him with some force, sending the 22-year-old flying into the air. Scolari is not impressed and launches a verbal assault on Vidal.
28' Neymar may have made Silva look bad just a moment ago, but the defender gives the Brazil star a reminder that he is still in the area and he smashes into him out wide, leaving the forward on his backside.
26' What a waste from Neymar. Chile spurn possession in the Brazil half and they are swift to start a counter. Neymar breezes past Silva like isn't there and manages to get into the area, but his left-footed shot is scuffed horribly and goes well wide.
25' Chile are enjoyig a good amount of possession in the Brazil half currently, but they are not doing a lot with it. They try to hook the ball into the area on numerous occasions, but Brazil block their deliveries or clear them easily.
23' Brief moment of petulance from Neymar there. The forward receives a heavy barge from Medel when trying to receive a lofted pass and after not getting a free-kick, he is quick to foul the Cardiff man. Webb decides not to give him a yellow card, though.
21' Brilliant work by Sanchez as he comes deep to get the ball, turns Fred and then charges away from Neymar. The Barcelona man then plays a good ball over the Brazil midfielders for Vargas, but he is nudged over by Luiz.
20' Chile have struggled so far. Their passing has been a little sloppy and their final ball has left a lot to be desired. They will need to improve significantly, while they will also hope Vidal can wake up a bit.
18' Goal David Luiz
GOAL!!!! THE MINEIRAO ERUPTS! Brazil have the lead and unsurprisingly it comes from a set-piece! Neymar's wicked delivery in from the left corner is flicked on and David Luiz is on hand at the back post to knock into the goal.
17' Yellow Card Eugenio Esteban Mena Reveco
17' Mena is the first name to go into the referee's book as he is penalised for a handball out on the left. Brazil have a free-kick now in an advanced position.
16' Encouraging Brazil counterattack as Neymar races on to a poor pass back to Silva, but after charging forward and producing a step-over to beat Medel, he cuts on to his right foot and loses momentum. Brazil are looking bright now, though.
15' Neymar's delivery from the free-kick looks good at first glance, but Bravo launches himself into the air and easily plucks the ball from the sky. Neymar will need to do better than that to beat his new Barcelona team-mate.
14' Brazil do win themselves a free-kick in a great position, though, as Neymar bursts down the left and is clipped right on the edge of the area by Diaz. They need to get a good delivery in from here.
13' More penalty claims, this time from Brazil! Hulk produced a good give-and-go with Neymar and raced into the area. He fell to the floor due to the attentions of Isla, but he went down so easily. Howard Webb correctly ignores the calls.
12' Tentative penalty claims for Chile as Sanchez finds space down the right and plays a clever pass into the danger zone as he spots the run of Vargas, who is sent tumbling under pressure from Luiz. Nothing given, though.
11' Despite the ability of some of the players on the pitch, this has been quite scrappy so far. Neither side has been able to produce a meaningful final ball, but it has been breathless.
9' Chile are getting a taste of their own medicine at the moment. They find themselves forced to play the ball back to their defence and then Bravo. Brazil press excellently and force the goalkeeper into an error, as his pass to Mena is less than impressive.
8' Good play by Hulk, who by all accounts has had a poor tournament so far. He races down the left and manages to hold off Isla, before crossing into the danger area, but Bravo comes and collects with confidence.
7' There seems to be a bit of a worry regarding Neymar at the moment. The Barcelona star has not been moving well since receiving that knock from Aranguiz and he is seeking some medical attention now.
5' JUST WIDE FROM MARCELO! Hulk fires a corner into the Chile area from the left and, although it is partially cleared, Marcelo latches on to it, cuts on to his left foot and blasts a good effort agonisingly past the left-hand post.
4' It has been a feisty start so far. Aranguiz finds himself in a heap on the ground after a clattering challenge and then, just a few moments later, he is the guilty party as he hauls Neymar down in the centre-circle.
3' The ball goes into the area from the left, but Brazil clear it easily as Fernandinho heads it out of the danger zone and Hulk picks it up, looking to launch a swift counterattack.
2' The day's first free-kick goes in favour of Chile as Vidal is bundled over by Thiago Silva on the left flank. They will have to do something clever with this though, as Chile have not looked particularly threatening in the air so far in this tournament.
1' Here we go! Chile get the action started in the Mineirao.
The two teams are now out on the pitch as we await the respective national anthems.
Here's the team formation and list of players and substitutes:
Brazil (4-2-3-1): Julio Cesar; Alves, Luiz, Thiago Silva, Marcelo; Luiz Gustavo, Fernandinho; Neymar, Oscar, Hulk; Fred.
Brazil subs: Jefferson, Victor, Paulinho, Dante, Maxwell, Henrique, Ramires, Hernanes, Willian, Bernard, Jo, Maicon.
Chile (3-5-2): Bravo; Jara, Medel, Silva; Isla, Diaz, Vidal, Aranguiz, Mena; Vargas, Sanchez.
Chile subs: Albornoz, Carmona, Pinilla, Valdivia, Toselli, Rojas, Orellana, Beausejour, Gutierrez, Fuenzalida, Paredes, Herrera.
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